NYSE$NRDY
Nerdy Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Nerdy's Q4 2023 earnings showcased strong revenue growth and improved profitability, driven by the transition to subscription-based learning memberships and the scaling of the Institutional business.
Nerdy, Inc. reported a 32% year-over-year increase in revenue for Q4 2023, reaching $55.1 million. The company achieved non-GAAP adjusted EBITDA profitability of $3.0 million, driven by growth in both Consumer and Institutional segments and improvements in operating efficiency.
- Revenue increased by 32% year-over-year, reaching $55.1 million, with growth accelerating sequentially throughout 2023.
- Consumer Learning Membership subscription revenue grew 109% year-over-year, representing nearly 100% of Consumer recognized revenue.
- Institutional revenue increased by 160% year-over-year, reaching $11.3 million and representing 21% of total revenue.
- Non-GAAP adjusted EBITDA was positive $3.0 million, demonstrating significant profitability improvements.
Headline financials
Revenue & EPS history
Nerdy · Revenue · Quarterly
$55.1M
Revenue by segment
Nerdy · $5.58M total across 1 segment · Q3 2023
- Institutional$5.58M+133.2%100.0%
Forward guidance
Nerdy anticipates continued growth in 2024, driven by Learning Memberships and Varsity Tutors for Schools. Full-year revenue is projected to grow by 24% year-over-year, with improved adjusted EBITDA margin and positive operating cash flow.
Tailwinds
- Continued growth of Learning Memberships in the Consumer business.
- Increased number of Learning Membership subscribers.
- Continued LTV extension.
- Higher Institutional revenues from Varsity Tutors for Schools.
- New Learning Member acquisition remains strong.
Headwinds
- First half year-over-year revenue growth is impacted by legacy Package revenue in 2023 that does not recur in 2024.
- First quarter revenues are also impacted by lower ARPM resulting from recent efforts to test additional product offering tiers.
- Investments in Varsity Tutors for Schools go-to market strategy.
- Investments in product development to drive continued innovation.
- Support for accelerating growth.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2023
-7.0%
Avg return
Earnings day
-6.6%
Avg return
5 days after
+1.0%
Avg return
30 days after
33%
7 / 21 earnings
Positive
+31.1%
Q4 2022
Best reaction
-43.8%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.1% | -4.2% | -6.7% | |
| Q4 2025 | +2.1% | +0.2% | -13.4% | |
| Q3 2025 | -9.4% | -3.7% | +41.2% | |
| Q1 2025 | -6.2% | +7.4% | +9.2% | |
| Q4 2024 | -4.4% | -0.6% | -8.2% | |
| Q3 2024 | -6.2% | +2.3% | +83.0% | |
| Q2 2024 | -43.8% | -40.8% | -36.3% | |
| Q1 2024 | -11.0% | -21.7% | -43.4% | |
| Q4 2023 | -18.1% | -1.3% | -4.3% | |
| Q3 2023 | -17.2% | -19.2% | -4.5% | |
| Q2 2023 | -20.2% | -11.7% | -8.1% | |
| Q1 2023 | +3.4% | +15.5% | +7.2% | |
| Q4 2022 | +31.1% | +39.0% | +56.2% | |
| Q3 2022 | +5.5% | +1.7% | -17.9% | |
| Q2 2022 | +9.6% | -20.7% | -17.8% | |
| Q1 2022 | -32.0% | -37.3% | +18.0% | |
| Q4 2021 | +0.9% | -7.7% | +15.6% | |
| Q3 2021 | -23.0% | -23.7% | -32.9% | |
| Q2 2021 | -0.1% | -0.2% | -0.2% | |
| Q1 2021 | -0.3% | -0.9% | -0.2% | |
| Q4 2020 | -6.9% | -10.2% | -16.4% | |
| Q2 2020 | — | — | — |
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